Short seller target GSX downgraded at Goldman on outperformance

Shares of GSX Techedu are dropping after Goldman Sachs downgraded the shares to Neutral from Buy in a post-close research note. Despite raising the stock’s price target to $57 from $50, analyst Christine Cho downgraded GSX Techedu on the stock’s recent outperformance. Cho now sees better opportunities elsewhere in the China Education, and has Buy ratings on TAL Education (TAL), New Oriental Education (EDU) and China Education Group (COE). Cho did not mention the fraud allegations levied by well-known short sellers against GSX when downgrading the shares. Carson Block’s Muddy Waters and Andrew Left’s Citron Research are among the funds accusing GSX of fraud.